Tax
Tax Cases Weekly Round-Up: 22 To 28 October, 2023
Supreme Court State Amendments Made To VAT Acts After GST Came Into Effect Are Invalid : Supreme Court Case Title: The State of Telangana & Ors. V. M/S Tirumala Constructions., Civil Appeal No(S). 1628 Of 2023 Citation : 2023 LiveLaw (SC) 927 A Division Bench of the Supreme Court, while deciding the appeals arising from judgments of Telangana, Gujarat and Bombay...
UPVAT Act | Family Entitled To Insurance Money Under Group Insurance Policy If Registration Valid On Date Of Death Of Registered Dealer: Allahabad HC
The Allahabad High Court held that if registration under the Uttar Pradesh Value Added Tax Act, 2008 was subsisting on the day of his death, his family would be entitled to insurance claim under the Group Insurance Policy.The bench comprising of Justices Saumitra Dayal Singh and Surendra Singh-I held“If the deceased held a registration certificate prior to the occurrence of his death and...
Jammu & Kashmir And Ladakh High Court Dismisses Writ Petition Challenging SCN Regarding Export Of Banned Yarn Shawls
The Jammu & Kashmir and Ladakh High Courts have held that jurisdiction in the case of shawls containing prohibited material lies in Delhi, not Jammu & Kashmir, as the seizure took place in Delhi.The bench of Chief Justice N. Kotiswar Singh and Justice M.A. Chowdhary has observed that in the absence of any specific pleadings in the writ petitions as well as memoranda of appeals, it...
TDS Paid From Assessee’s Own Account Can’t Form Part Of Consideration Of Service Charges Paid To Overseas Service Provider, No Service Tax Payable: CESTAT
The Bangalore Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the TDS amount paid to the Income Tax Department by the appellant from his own account cannot form part of the consideration of the service charges paid to the overseas service provider, and service tax is not payable.The bench of D. M. Misra (Judicial Member) and Pullela Nageswara Rao...
Delhi High Court Grants Assessee An Opportunity To Adduce Evidence On Qualification, Experience, Work Profile Of Employees To Avoid Section 40A(2) Disallowance
The Delhi High Court has granted the assessee an opportunity to adduce appropriate evidence—documentary or otherwise—before the Assessing Officer in order to establish its claim regarding educational qualification, experience, work profile, and in particular the duties discharged by the concerned persons to justify the claim of the appellant or assessee qua payment of salary to the...
Delhi High Court Quashes Assessment Order Passed Before Expiry Of Time To File A Reply To The Show Cause Notice
The Delhi High Court has quashed the assessment order passed before the time to file a reply to the show cause notice expired.The bench of Justice Rajiv Shakdher and Justice Girish Kathpalia has observed that the show cause notice was issued on March 31, 2023, giving time to the petitioner or assessee to file its reply by May 5, 2023 (15:49 hours). The impugned order was passed on April...
Form No.10-IC Couldn’t Be Uploaded On ITBA Portal Due To Technical Problem: Gujarat High Court Allows Section 115BAA Concessional Tax Benefit
The Gujarat High Court has allowed the benefit of concessional tax under Section 115BAA of the Income Tax Act, as Form No.10-IC could not be uploaded on the Income Tax Business Application (ITBA) portal due to technical problems.The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has observed that Form 10-IC was furnished by the assessee on January 29, 2022. Since the assessee...
No Service Tax Payable On Bank Guarantee Provided To Group Of Company: CESTAT
The Chandigarh Bench of Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that no service tax is leviable on the corporate guarantee provided by the appellant/assessee to various banks/financial institutions.The bench of S. S. Garg (Judicial Member) and P. Anjani Kumar (Technical Member) has observed that there is no consideration insofar as the “corporate guarantee‟...
Long-Term Capital Gain Can’t Be Claimed Without Owning Flats for At Least 3 years: ITAT
The Hyderabad Bench of Income Tax Appellate Tribunal (ITAT) has held that long-term capital gain cannot be claimed without owning flats for at least 3 years.The bench of R.K. Panda (Vice President) and Laliet Kumar (Judicial Member) has observed that PCIT is fully justified in invoking the provisions of Section 263 of the Income Tax Act as the assessee without holding the seven flats for a...
CESTAT Quashes Service Tax Demand On Liquidated Damages Against BHEL
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has quashed the service tax on liquidated damages against Bharat Heavy Electricals Limited (BHEL).The bench of P. Dinesha (Judicial Member) and M. Ajit Kumar (Technical Member) has set aside the demand for service tax on liquidated damages.The appellant/assessee is paying service tax under forward charge on...
Accumulated CENVAT Credit Of EOU Unit Can Be Transferred To DTA Unit After Exit Of EOU Status: CESTAT
The Chennai Bench of Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the accumulated CENVAT credit of export-oriented units (EOU) can be transferred to the Domestic Tariff Area (DTA) Unit after the exit of EOU status.The bench of Sulekha Beevic (Judicial Member) and Vasa Seshagiri Rao (Technical Member) observed that the unit has become a DTA after exiting from...
No Requirement To Have A DIN Number In Satisfaction Note Recorded By Assessing Authority: Kerala High Court Upholds Section 153C Proceedings
The Kerala High Court has upheld the proceedings under Section 153C of the Income Tax Act and noted that there is no requirement to have a DIN number in the satisfaction note recorded by the Assessing Authority.The bench of Justice Dinesh Kumar Singh has dismissed the writ petition and stated, “It cannot be said that the impugned notices and assessment orders are without jurisdiction...